Handysize bulkers have not performed brilliantly in the sale-and-purchase market this year, but that is changing.
The number sold for further trading between January and September fell at an annual rate of 14%, a much steeper decline than the 0.7% drop noted overall in the dry bulk market, according to TradeWinds calculations based on data from Allied Shipping Research.
Panamaxes and supramaxes have been attracting much more attention as some companies, such as Star Bulk Carriers, purchased whole fleets.
Traditional handysize players, including Diligent Holdings, have also been shifting their focus to bigger vessels.
However, things are looking up.
Since early June, when the number of S&P handysize transactions was down by 44% year on year, owners such as Pacific Basin and Taylor Maritime have announced handysize purchases.
Greek and Turkish players, which had been notably absent from the market earlier in the year, are now warming to it.
Buying interest has focused on the market for 32,000-dwt vessels, which Giannis Andritsopoulos, an S&P broker at Intermodal in Athens, described as “more encouraging”.
Tolunay Ship Management is one example. The little-known Turkish company struck in August to conclude its first purchase in three years, picking up the 33,700-dwt Atlantic Grace (built 2010).
The ship, which joined Tolunay’s fleet last month as Lunara, represents the company’s biggest investment so far. At a reported sale price of between $9m and $9.5m, the Shin Kochi Jyuko-built ship becomes Tolunay’s biggest unit and its youngest by far.
Tolunay, whose managers did not respond to a request for comment, was set up in 2013, according to IHS Markit. The Tuzla-based company has remained focused on handysizes since the outset, using them on short-haul trades in the Mediterranean and to Western Europe, like other Turkish peers that have come to play a significant role in that market.
‘Reluctant interest’
Tolunay may have purchased the Lunara with fleet renewal in mind. Its three other vessels were built between 1995 and 1999 and may be considered candidates for sale or further trading.
Across the Aegean Sea, Greek handysize player Team Fuel Corp seems to have completed such a fleet renewal move recently. Brokers report that the Elpida Hatjioannou-led company sold the 23,600-dwt Team Tango (built 2001) in mid-August for about $4.5m.
A few weeks later, brokers identified Team Fuel as the buyer of a younger, bigger vessel — the 31,900-dwt Elvira Bulker (built 2011). TradeWinds reported last month that Lauritzen Bulkers sold the Hakodate Dock-built ship to an unidentified Greek buyer for nearly $10.3m.
Lauritzen declined to comment on whether it had sold the ship and Team Fuel did not respond to a request for comment.
According to Clarksons, average prices for 10-year-old handysize bulkers are at their lowest level since November 2017.
The sub-par performance of handysizes in the freight markets probably played a role. Tripcharter spot rates climbed by just 14% year on year, according to Clarksons figures for the week to 13 September. That was far below the performance of capesizes, which climbed 136% over the same period, while panamaxes rose 30% and supramaxes surged 34%.
In a deal that highlights how “reluctant interest” for handysizes is gradually spreading from ships with three generators to those with two, a Greek company is believed to have bought the 33,200-dwt CS Star (built 2011) for $10.3m after four candidates inspected the vessel, according to Andritsopoulos.
Other Greeks are said to be behind the $10.5m purchase of the 31,900-dwt Hedvig Bulker (built 2011), a sistership of the Elvira Bulker.
Smaller Japanese-built tonnage is also in play. Greeks reportedly purchased the 28,300-dwt Nord Tokyo (built 2009) for $7.7m. Some London brokers identified Allseas Inc as the buyer of the 28,400-dwt Haruka (built 2011), which Japan’s Nissen Kaiun reportedly sold in July for $7m. A representative at the Anthony Valmas-controlled Allseas, however, dismissed that information.
In the same month, clients of Allseas sold the 28,500-dwt Allstars (built 2000) for about $4.5m. It has since emerged with Hong Kong-based interests as the Universe Honesty.
Greek acquisitions of Chinese-built handysize tonnage have been much rarer. One exception was the deal for the 34,300-dwt sisterships SAM Falcon and SAM Phoenix (both built 2011), which are believed to have fetched more than $8m each.
